“liquidity allocation, not settlement, is where prediction markets create real value”
Argues that value in prediction markets is generated not at settlement but through the ongoing process of liquidity allocation and repricing. Explores how prediction markets differ from traditional markets at the microstructure level — the key distinction being the representation of the asset, not the mechanism — and how their bounded outcome space makes them composable, enabling liquidity to attach to things that previously had value but no market.
No technical background needed